ACCT 1100 – Chapter 9 AssignmentComplete the aging schedule given below. Then determine the amount of the adjusting entry for estimated uncollectible accounts based on the schedule and on the information about the balance of Allowance for Doubtful Accounts. (30 points)AgeGroupB
ACCT 1100 – Chapter 9 – Assignment
- Complete the aging schedule given below. Then determine the amount of the adjusting entry for estimated uncollectible accounts based on the schedule and on the information about the balance of Allowance for Doubtful Accounts. (30 points)
| Age
Group |
Balance | Percentage Estimated as Uncollectable | Amount Estimated Uncollectable |
| Not yet due | $66,000 | 2% | |
| 31 – 60 days overdue | 40,000 | 5% | |
| 61 – 90 days overdue | 24,000 | 8% | |
| 91 – 120 days overdue | 16,000 | 12% | |
| Over 120 days overdue | 3,000 | 30% | |
| Total | |||
Allowance for Doubtful Accounts has a debit balance of $650 before adjustment. What is the amount needed for the adjusting entry? __________
- Calculate the interest on each of the following notes (20 points)
| Face Value of Note | Interest Rate | Term of Note | Interest |
| $10,000 | 12% | 72 days | |
| $ 6,500 | 8% | 60 days | |
| $ 900 | 11% | 36 days | |
| $4,650 | 9% | 80 days |
- Determine the due date of each of the following notes (20 points)
| Date of Note | Term of Note | Due Date |
| October 30 | 30 days | |
| May 12 | 72 days | |
| November 27 | 36 days | |
| August 18 | 60 days |
- Pike Corporation uses the Aging of Receivables Method (balance sheet method) for recording estimated uncollectibles. As of January 1, 20XX, Allowance for Doubtful Accounts had a credit balance of $2,000. Record the following selected transaction in general journal form for 20XX (20 points)
Feb. 12 Sold merchandise on account to Steven Baker, $2,150.
May 7 Wrote off a $475 balance owed by Donna Jacobs, who has declared bankruptcy.
Oct. 20 Received notice from an attorney that Steven Baker had declared bankruptcy. Wrote off the entire balance owed by Baker.
Nov. 9 Sold merchandise on account $200.
Dec. 31 An aging schedule reveals an estimated $4,000 of uncollectibles. Record the necessary adjusting entry.
| GENERAL JOURNAL | PAGE | ||||
| Date | Description | Post Ref. |
Debit | Credit | |
- Outdoors Unlimited accepts the Explorer credit card from its customers. Explorer charges a 3.5% service fee and pays Outdoors Unlimited the amount net of Explorer charges once a month. During February, Outdoors Unlimited sold $27,000 worth of merchandise to customers using the Explorer charge card. On February 28, Outdoor Unlimited sent the $27,000 worth of credit card receipts to Explorer. On March 4, Outdoors Unlimited received cash proceeds from Explorer for the February credit sales less the service charge. Prepare the journal entries to record February sales and the March 4 cash receipt. (10 points)
| GENERAL JOURNAL | PAGE | ||||
| Date | Description | Post Ref. |
Debit | Credit | |
